Many Countries Have Made Vigorous Efforts To Recruit Textile And Garment Factories: From Fear Of Being Unable To Meet The Delivery Date To Fear Of Cancellation Of Orders.

With the continuous spread of the epidemic, the rest of the country has been shut down and shut down, and there has been no guarantee of resumption.
1, Turkey officials said: the order of $2 billion for garment production will flow from China to Turkey.
Two Turkey officials said that due to the impact of the new coronavirus epidemic in China, a number of fashion retailers will transfer their production orders to Turkey producers. One official predicted that the total amount of new orders generated could reach up to $2 billion.
Hadi Karasu, head of Turkish Clothing Manufacturers' Association (Turkey clothing manufacturers association), said Hadi. "Purchasing managers and designers are unable to travel to China because of concerns about the epidemic and traffic restrictions. Therefore, many famous brands have begun to discuss the transfer of their new products to Turkey.
He said that in the past few years, the global dominance of Chinese manufacturing industry has been increasing, so manufacturers in Turkey are constantly shifting their production lines to the production of high-end clothing. But the epidemic has led many European and American brands to consider turning their production back to Turkey.
Due to the currency crisis in 2018, lira in Turkey has depreciated by 36% in the past two years, which has greatly reduced Turkey's production costs. At the same time, China's production costs are increasing, the gap between the two is shrinking, coupled with the outbreak of the new coronavirus, the attractiveness of Turkey makes further growth. Hadi Karasu said: "with the narrowing of the manufacturing cost gap between China and Turkey, some European companies (before the outbreak) are considering moving the production line to Turkey."
Many countries have made vigorous efforts to recruit textile and garment factories: from fear of being unable to meet the delivery date to fear of cancellation of orders.
LPP, a fashion retailer in Poland, said earlier that it was negotiating with factories in Turkey, Bangladesh and Vietnam as a backup plan to deal with further delays in China's production.
"In 2019, China's clothing exports amounted to about $170 billion." Hadi Karasu added: "according to our calculations, about 1% of the orders will be transferred to Turkey, and the total value is expected to be around $2 billion."
In 2019, the total exports of garments in Turkey amounted to US $17 billion 700 million. As an export oriented economy, any promotion of its export growth will improve its current fiscal deficit and greatly push the government of Turkey to achieve the preset 5% economic growth target.
Mustafa Gultepe, director of the Istanbul Apparel Exporters' Association (Istanbul apparel exporters association), said that more and more existing and new customers are communicating with Turkey's factories, and Turkey's manufacturing industry has the ability to undertake these additional orders. Gultepe said: "since the outbreak of the new coronavirus, clothing retailers have been asking about the price and output of the Turkey plant. I think if the impact of the epidemic lasts for five to six months, there will be a massive order out of China from May. "
2, India has substantially increased import tariffs and introduced policies to restrict imports.
India government finance minister Nimara Siharaman (Nirmala Sitharaman) announced in its 2020-21 year government budget that the import tariffs of furniture, footwear, household appliances, mobile phone parts and toys and other products should be increased, and further revised the Section 28DA on anti-dumping and related measures to restrict imports. Footwear increased from 25% to 35%.
In addition, the government budget of India added 1 new chapters in the tariff law in 2020. The establishment of FTA origin inspection will be more strictly regulated. The India government has further revised the relevant provisions of the Section 28DA on anti-dumping and defense measures to restrict imports. At present, the number of anti-dumping investigations by India is only second of that of the United States, ranking the world's largest.
3, Vietnam explicitly rejected all ships from the epidemic area? 14 days of isolation or no use!
According to sources in the industry, Vietnam's CAM PHA is no longer waiting for 14 days. Previously, Vietnam's treatment of ships in China or from epidemic areas has been rather harsh. To meet the quarantine requirements and to anchor in a specific place, isolation and isolation will be available only after 14 days.
Indonesia, Jordan and Russia have also suspended imports of some Chinese goods.
From worry to missed delivery to fear of cancellation of orders! Three major problems faced by textile and garment factories
With the recent delays in the opening up of Jiangsu and Zhejiang textile industrial clusters, Shengze and Keqiao, the largest textile fabric grey fabric market in China - Guangzhou Zhongda also issued a notice of "no delay in start up". We can see that the current outbreak of the new coronavirus is still grim, and the market is expected to remain in a short period in the near future. Faced with this "longest holiday in history", textile bosses began to worry that the orders they had received could not meet the deadline or even cancelled.
The first problem facing factories is "resuming work". Without starting, there will be cost, that is, loss. The average time for resuming work is expected to be postponed for 20-30 days, and the time of resumption of production capacity will be longer. The main producing areas of clothing are five provinces in Guangdong, Zhejiang, Jiangsu, Fujian and Shandong. Many enterprises even resume their work after February 7th, but the proportion of foreign workers returning before March will not be too high. Even if they come back, they will not be able to work in isolation. The time for returning home owners in Hubei and Wenzhou will be delayed. There will be a situation where people will not be able to come back or come back to work or work.
The second problem facing factories is the "summer order" extension. Around March is the peak delivery period in summer. The direct consequence of order delay is the problem of default payment, and two is the increase in inventory. Textile and garment enterprises need to cooperate with the upstream and downstream industry chain to complete the order. If the supporting enterprises can not return to work simultaneously, many jobs can not be completed. Under such circumstances, there are two possible situations, one is the lack of demand, and the other is that the supply of products is insufficient in summer due to the delay in start up and the lack of confidence in the industry.
The third problem facing factories is the "tight cash flow" caused by rising costs and orders default. Delays in reemployment, increase in operating costs such as wages and rents, deductions from order delays, increased inventory caused by customers' non pick-up, poor market conditions, resulting in customer pressure reduction, arrears and so on.
The fourth problem facing factories is "poor business expectations". In the spring, inventory in the spring often leads to poor business expectations in the autumn. After the summer production is delayed, even if the consumer rebounding, the raw material suppliers in the supply chain will not be able to produce enough business due to lack of confidence and careful stocking. In this way, most factories will put the "treasure" in 2020 in winter if the order is insufficient, and the competition will be more intense in winter, which will bring more uncertainty to the industry.
Of course, in response to this pressure, the government and other relevant departments are trying to remedy the burden of enterprises:
1, from February 3rd, the central bank will launch a 1 trillion and 200 billion yuan open market reverse repurchase operation to provide funds to ensure adequate liquidity supply, and the overall liquidity of the banking system is more than 900 billion yuan over the same period last year.
The 2 and five departments stipulate that enterprises will be able to extend futures and renew loans if they are affected by the epidemic.
3, Wujiang, Keqiao, Haining... Each cluster concentrates on the policy of rescuing the market: it will bring substantial help to textile enterprises from the aspects of social security, rent, taxes and fees.
In any case, the silent war epidemic is still in progress. The textile bosses can only silently count down the time, hoping to produce on schedule. Of course, you can also take advantage of your usual leisure time to think about how to improve your "hematopoietic power" after the start of the project, and you can get through this magical 2020.